Japan's manufacturing and services sectors have experienced a slight dip in activity for December, as indicated by the latest Purchasing Managers' Index (PMI) figures. The composite PMI decreased to 51.10 in December from a previous reading of 52.00 in November. This change, updated on January 7, 2026, suggests a modest slowing in the pace of expansion.
The PMI, a reliable barometer of economic health, uses a reading above 50 to signal growth in the sector, while a reading below 50 indicates contraction. Although the index has fallen, it remains above the critical level, reflecting continued growth albeit at a reduced rate.
This month-over-month comparison suggests that while Japan's economy is still on a growth trajectory, momentum is softening. Economic analysts will be closely watching how these trends play out in the coming months, determining whether this slowdown is a temporary blip or indicative of a more sustained moderation in activity.
